Thailand’s plan to legalise and regulate casino complexes has attracted the attention of six multinational corporations, all with extensive experience in managing world-class entertainment venues.
Local media, citing the Thai Prime Minister’s secretary-general Prommin Lertsuridej, confirmed the possible participation of the companies.
While he refrained from naming the interested companies, previous reports have highlighted Genting Malaysia, Galaxy Entertainment Group, Las Vegas Sands, MGM Resorts, Wynn Resorts, and Melco Resorts and Entertainment as potential contenders.
Melco Resorts has already taken steps toward establishing a presence in Thailand, announcing plans to open an office in Bangkok. The company currently operates integrated resorts in Cyprus, Manila, Sri Lanka, and Macau.
The Thai Cabinet recently approved the draft Entertainment Complex Business Act in principle, which aims to regulate and tax the country’s underground gambling market.
Prommin emphasised that the legislation is not primarily focused on gambling, but on creating comprehensive tourist destinations. Casinos, he noted, would occupy just 5% of the entertainment complexes’ total area.
The planned complexes are envisioned as multifaceted destinations featuring luxury hotels with at least 5,000 rooms.
They will also include convention and exhibition centres, indoor sports arenas, concert halls, shopping malls, duty-free shops, theme parks, high-end restaurants, and other facilities.
These complexes are expected to be built on state-owned land near major tourism hubs, covering at least 118 acres, with strong transport and digital infrastructure connections.
Prommin further highlighted the urgency of moving forward with the initiative, as Thailand faces competition from Japan’s soon-to-open integrated resort in Osaka.
The Thai government sees significant potential in leveraging the country’s existing tourism infrastructure and attracting international visitors.
A boost to GDP
According to Thailand’s Finance Ministry, the entertainment complex project is projected to boost the country’s GDP by 0.2% during the construction phase and 0.7% once operational.
The initiative is expected to create approximately 20,000 jobs and increase tourist arrivals by 5-10% during the low season, resulting in a 13% rise in overall tourism revenue.
Investors interested in the project must meet stringent criteria, including a minimum of 10 billion baht (around $288m) in registered capital and the ability to invest at least 100 billion baht.
Business plans must also include detailed proposals for comprehensive entertainment complexes.
Online gambling moving quickly
In addition to the development of physical casino complexes, Thailand is pursuing the legalisation of online gambling, aiming to generate an estimated 100 billion baht ($2.89bn) in annual revenue.
This initiative is part of a broader strategy to diversify government income streams and regulate the digital gambling market.
Former Prime Minister Thaksin Shinawatra, widely regarded as a significant influence on the current administration, has spoken publicly about these plans. He noted that the government is exploring methods to control access to online gambling platforms and ensure tax compliance.
Shinawatra also mentioned the possibility of introducing cryptocurrency as a payment option, inspired by global developments in financial technology.
The draft rules for online gambling reform are expected to be ready in as little as a month, signalling the government’s commitment to rapidly advancing its regulatory framework.
The Thai government’s dual approach of developing integrated resort complexes and legalising online gambling represents a significant policy shift that breaks from tradition.
Gambling, for the most part, has been illegal since the country approved the Gambling Act of 1935. However, amid an increase in illegal gambling and the possibility to capture the economic benefits legal gambling can offer, Thailand – and other countries – are reconsidering their position.